Sony Might Reject IPO Proposal; Shares Drop Immediately

Back in May, fund manager Daniel Loeb of Third Point urged Sony Corp. to focus on its entertainment unit, which has the potential to generate more profit than its currently slacking performance.

Loeb proposed that Sony sell up to 20% of music, television, and film divisions through an initial public offering that could raise $2 billion for pursuing acquisitions and other investments.

However, Nikkei reported that Sony is considering rejecting the proposal and immediately caused Sony Corp. shares to drop 3.1%. Bloomberg reported that a company spokesperson said Sony executives are still reviewing the proposal and an official announcement is yet to be been made.